BMW plans several thousand voluntary job cuts in Germany by end-2027
BMW’s agreement with its works council covers administrative and development divisions but excludes production, while existing cost reductions are set to intensify.
- BMW plans to cut several thousand jobs in Germany through a voluntary redundancy program by the end of 2027.
- The job reductions will be limited to administrative and development divisions, with production operations remaining unaffected.
- The company is implementing these cuts in response to weak demand, pressure on profits, and a sharp decline in sales in China.
- A source familiar with the plans expects the company's total worldwide workforce to contract by around 8,000 positions.
After Volkswagen and Mercedes-Benz agreed workforce reductions affecting tens of thousands of employees, BMW is now preparing a voluntary redundancy programme in Germany as weak demand and pressure on profits weigh on the carmaker.
Several thousand positions will be removed by the end of 2027, BMW announced on Wednesday (July 29).
A person familiar with the plans expects the group’s worldwide workforce, currently about 150,000, to contract by around 8,000.
A company spokesperson said the agreement with the works council was limited to administrative and development divisions, leaving production operations outside the scheme.
Chief executive Milan Nedeljković addressed employees at a workers’ assembly in Munich the same day.
According to a participant, he told staff that the forces shaping the industry had changed markedly and that the foundations of BMW’s business model had shifted with them.
He cautioned that the period ahead would be difficult, but said the measures were important if BMW was to become more profitable.
BMW lowered its profit forecast for the year in June, citing weaker-than-expected business in China and a sharp recent decline in vehicle sales there.
The company had previously been regarded as relatively steady among its peers.
Nedeljković later said BMW would move faster and go further with cost reductions already under way.
Germany’s automotive sector is also facing the high cost of moving to electric vehicles, intense competition from China and US tariffs.
Within the Volkswagen Group, Porsche, its sports-car maker, widened its restructuring on Monday and plans to reduce staffing by about 20% by 2035.
At Audi, another group brand, thousands of workers protested on Wednesday at the Neckarsulm plant, one of four German sites threatened with closure under Volkswagen’s restructuring plans.
BMW will publish its second-quarter financial results on Thursday.
Source: Reuters
